{"id":17436,"date":"2019-02-27T14:41:00","date_gmt":"2019-02-27T14:41:00","guid":{"rendered":"http:\/\/unitelive.org\/?p=17436"},"modified":"2020-11-12T12:57:12","modified_gmt":"2020-11-12T12:57:12","slug":"carney-no-deal-warning","status":"publish","type":"post","link":"https:\/\/unitelive.test.igniteamt.com\/?p=17436","title":{"rendered":"Carney ‘no deal’ warning"},"content":{"rendered":"
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There is no way the UK can prepare for a no deal Brexit, and growth is \u00e2\u20ac\u015bguaranteed\u00e2\u20ac\u0165 to fall if the country crashes out of the EU, the governor of the Bank of England (BoE) told MPs yesterday (February 26).<\/p>\n

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Mark Carney made the statements on the same day as Unite representatives warned<\/a> that the Tories\u00e2\u20ac\u2122 hard Brexit tactics are destroying the UK\u00e2\u20ac\u2122s world-class manufacturing base.<\/p>\n

 <\/p>\n

Carney told the Treasury Select Committee that there is not enough warehouse space for UK manufacturers to stockpile goods in the event of no deal and that economic growth would be \u00e2\u20ac\u015bguaranteed\u00e2\u20ac\u0165 to decline.<\/p>\n

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The BoE reduced its growth forecast for 2019 to 1.2 per cent earlier this month \u00e2\u20ac\u201c down from November\u00e2\u20ac\u2122s forecast of 1.7 per cent \u00e2\u20ac\u201c but Carney made clear a no deal Brexit<\/a> would result in a further downgrade.<\/p>\n

 <\/p>\n

He said, \u00e2\u20ac\u015bIf I come back (to the committee) in May and there\u00e2\u20ac\u2122s no deal and no transition, I guarantee that the path of GDP in our forecast will be materially lower than our February forecast.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bAnd that is absolutely the view of businesses up and down the country.\u00e2\u20ac\u0165<\/p>\n

 <\/p>\n

Carney also told MPs that manufacturers<\/a> do not have adequate warehouse space to stockpile the supplies necessary to weather a no deal exit.<\/p>\n

 <\/p>\n

He added that the BoE would probably have to provide support for the economy under a no deal Brexit but admitted that there were few options available to do so.<\/p>\n

 <\/p>\n

BoE deputy governor Sir Dave Ramsden told the committee Brexit uncertainty had caused a dramatic fall in investment over the past year and that this was expected to continue.<\/p>\n

 <\/p>\n

Ramsden said, \u00e2\u20ac\u015bThat\u00e2\u20ac\u2122s incredibly unusual at a time when the economy<\/a> is growing – it\u00e2\u20ac\u2122s out of line with what has happened historically and out of line with our main economic partners.\u00e2\u20ac\u0165<\/p>\n

 <\/p>\n

Unite general secretary Len McCluskey said the union\u00e2\u20ac\u2122s members are at the sharp end of the fall in business confidence described by Ramsden.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015b(Our convenors) are saying loud and clear that the Tories\u00e2\u20ac\u2122 mishandling of Brexit is already being felt in the winding down of operations and the refusal of businesses to commit to future investment,\u00e2\u20ac\u0165 McCluskey said.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bThey see the prime minister running down the clock in order to give her deal a chance of making it through parliament, saving her job in the short-term but imperilling hundreds of thousands of others.\u00e2\u20ac\u0165<\/p>\n

 <\/p>\n

Calling for no deal to \u00e2\u20ac\u015bcome off the table now\u00e2\u20ac\u0165, McCluskey said ministers and MPs seeking to prevent a hard Brexit must have \u00e2\u20ac\u015bthe courage of their convictions and step up\u00e2\u20ac\u0165.<\/p>\n

 <\/p>\n

He added, \u00e2\u20ac\u015bWe desperately need a customs union to preserve our enduring trading arrangements and I urge Mrs May to reconsider her red line on that issue.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bMPs should this week seize the chance offered by Labour\u00e2\u20ac\u2122s proposals to honour the referendum result by leaving on terms that protect our economic interests and jobs.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bThey should back Jeremy Corbyn\u00e2\u20ac\u2122s plan and bring the uncertainty to an end.\u00e2\u20ac\u0165<\/p>\n","protected":false},"excerpt":{"rendered":"

There is no way the UK can prepare for a no deal Brexit, and growth is \u00e2\u20ac\u015bguaranteed\u00e2\u20ac\u0165 to fall if the country crashes out of the EU, the governor of the Bank of England (BoE) told MPs yesterday (February 26).   Mark Carney made the statements on the same day as Unite representatives warned that […]<\/p>\n","protected":false},"author":2,"featured_media":12740,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[363,486,55],"wps_subtitle":"BoE governor Mark Carney: no way to prepare for \u00e2\u20ac\u0098no deal\u00e2\u20ac\u2122 Brexit","_links":{"self":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/17436"}],"collection":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17436"}],"version-history":[{"count":2,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/17436\/revisions"}],"predecessor-version":[{"id":25488,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/17436\/revisions\/25488"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/media\/12740"}],"wp:attachment":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}